Why should you invest in this smallcase?
This smallcase aims to generate best possible risk adjusted return for clients. The target is not just to beat a benchmark but to generate attractive absolute IRR (20%+) while minimising risk. This is achieved by investing in quality businesses with predictable earnings growth that are run by honest and competent promoters at valuations which offer significant margin of safety. This smallcase is a concentrated portfolio of 10-12 such companies. The approach is market cap & sector agnostic but bias is towards investing in quality small and mid cap companies. Below is the process to screen investment opportunities:
- We screen for fast growing high quality business by doing both desktop research like reading past annual reports, earnings call transcripts, industry reports, etc as well as thorough due diligence like conducting channel checks, market/customer surveys, taking feedback of employees, competitors and industry experts, etc.
- We test for clean corporate governance standard by employing our proprietary framework that checks for multiple factors some of which are history of related party transactions, promoter shareholding and pledging, management remuneration, qualifications raised by auditors, etc.
- We maintain a list of companies that have cleared above 2 criteria of fast growing quality businesses and high promoter integrity along. Then we patiently wait to select these companies in the smallcase as and when their share prices hit our conservative target pricing.
Past Performance vs
Jan 1, 2015
Note: Past performance graph includes changes due to rebalance, events like stock splits & mergers. Also, past performance doesn't guarantee future returns
About the Manager
Prescient Capital is a SEBI Registered Investment Adviser. Our aim is to generate attractive return for clients by recommending investments in high quality businesses run by honest and competent promoters at valuations that offer significant margin of safety.